More than two-thirds of LPs say they would bankroll first-time funds (chart)

The majority of limited partners say they would consider committing to a first-time fund, defying conventional wisdom that such funds are risky bets. Among factors driving the trend is a growing body of research showing that first-time funds perform at least as well as other funds. Investors also tend to have more leverage negotiating terms and conditions with new fund managers. The accompanying chart is based on a survey of 92 investors this fall by Palico, which provides an online PE marketplace for investors.

Chart of Week, first-time funds, November 2015, Buyouts, Paul Centopani